WFP Secures Climate Insurance Funding for Ethiopian Farmers

The World Food Programme (WFP) distributed $1.4 million in insurance payouts to 80,000 Ethiopian smallholder farmers last year to assist them against drought, pests, and crop diseases. In August, EIB Global, the development arm of the European Investment Bank, announced a grant of up to four million euros to the WFP to expand climate-risk insurance for smallholders.

The initiative aims to protect approximately 210,000 farmers from potential livestock and crop losses. It includes the creation of a Premium Guarantee Fund designed to pre-finance premiums and support rural lenders in cases where borrowers cannot make payments. The WFP will manage this fund initially before transitioning its administration to the Development Bank of Ethiopia (DBE).